1 MANAGEMENT Executive Summary The report has helped in examining the various aspects that leads to turnover among the different employees in the aviation industry. In the complex business environment, there are different issues such as conflicts or lack of growth related opportunities which has led to the attrition among employees and it has affected their morale. However, there is inclusion of various strategies which have been identified that helped in improving the growth of employees in the companies. With the help of the Maslowâs Hierarchy Theory, it can be seen that basic needs of employees are required to be identified and analyzed that can be suitable for growth of employees.
2 MANAGEMENT Table of Contents 1.0 Introduction..........................................................................................................................3 2.0 Analysis of Reasons of High Turnover in Aviation Industry..............................................3 3.0 Analysis of Realistic Processes to Improve Motivation of Businessâs Workforce..............5 4.0 Conclusion............................................................................................................................9 References................................................................................................................................10
3 MANAGEMENT 1.0 Introduction In current scenario of business environment, it has been noticed that Employee Turnover has become a common issue that is disturbing the development of the companies undesirably. The different people join and leave companies which is not new and the main reasons include lack of growth or progression, being overworked or there are different other better opportunities which are available to them which is efficient in improving the job lives of the individuals suitably. The main aim and purpose of the report is to understand different reasons of the turnover or attrition of the employees in the aviation industry along with suggesting the different strategies and solutions to reduce the respective issue and become competitive in nature. 2.0 Analysis of Reasons of High Turnover in Aviation Industry In the present scenario of the business environment which is complex, there is high level of attrition among the different employees in the aviation industry such as flight attendants or the pilots. As commented bySun and Wang (2017), the expanding usage of flights or escalating the costs of flights along with growing focus on the different quality of the flights have been able to increase the demand for the flight attendant jobs and it helps in creating great opportunities of employment for them. According toReina et al. (2018), theincrease in the economic pressures, the different airline companies continue to demand that one single person needs to perform the job of two or more individuals which distresses the morale of the employees and it creates pressure on them in continuing such tiresome work. By asking the different workers to choose between their personal life and work life, it has led to the extra turnover among them
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4 MANAGEMENT leading to the downfall of the profitability of the company negatively and leads to conflicts among employees and employers. For instance-In Virgin Airlines, there was a huge conflict between the management and pilots of the airlines which led to decline in the profitability of the company. The main reason for the conflict was that management of Virgin Atlantic did not agree to the hike in salary and other benefits which were demanded by the employees (Financial Times.com 2019). Figure 1: Turnover Rate Among Employees in Transportation Industry (Source:Cloutier et al. 2015) Furthermore, as commented byPereira, Malik and Sharma (2016), theproper and suitable opportunity for development as well as growth are essentialfor retaining the different employees successfully. In the different airline industry, it has been noticed that the employees are feeling trapped in dead-end related position, in such scenario, they try to look for changes which will be suitable for providing them with chance for improving the income and status. Additionally, as opined byCloutier et al. (2015), there are introduction of different airline companies in the market that can be providing the appropriate scope for showing their skills and the income is better.
5 MANAGEMENT Figure 2: Employee Turnover Rate at Aviation Industry (Source:Cho et al. 2017) From the different surveys, it can be identified that the rate of turnover of employees in the Airline industry has increased and touched to more than $1.5 lakh crore in the year 2015-2016. From the respective graph, it can be seen that there has been increase of turnover among employees in which it can be identified that in 2016, there has been more than 29.9 billion euros that influenced growth of the aviation industry negatively. From the year 2015, the percentage has lessened to a certain extent, however, the condition of the entire airline industry is still the same and the management of the companies need to undertake certain changes which will be suitable for improving their position in the business environment which is competitive.
6 MANAGEMENT 3.0 Analysis of Realistic Processes to Improve Motivation of Businessâs Workforce InmanagingtherespectiveturnoverissuesintheAviationIndustry,different strategies which can be adopted by the different airline companies for cultivating the morale of employees and increase the efficiency of the company in an appropriate manner. As opined byAldrich and Wiedenmayer (2019), there should bebolstering of the engagement among the different employeeswherein the different employees need societal communication as well as rewarding type of working environment. The proper respect as well as recognition for the flight attendants and the pilots from their managers along with challenging position with the room to learn as well as move up. Additionally, as opined byAl Mamun and Hasan (2017), the management of the company needs to pay properattention to the different personal needs and offer high level of flexibilitywherein they can. It can be inclusive of compressed schedules or the backup day care solutions can be suitable for increasing loyalty among the staffs which will worth the effort. As opined byAguenza and Som (2018), there are different scenarios in the business environment, it can be seen that while money is not always the primary reason for the high level of turnover among employees, in such scenarios, the different employeesshould be paid with fair wageswhich will be increasing in par with professional development. In performing the respective aspect, it will be suitable in ensuring that the different employees do not start searching for better offer elsewhere. As commented in theMaslowâs Hierarchy Theory, there are few basic needs which needs to be implemented in the workplace as it will be suitable for engaging the employees.
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7 MANAGEMENT Figure 3: Maslowâs Hierarchy of Needs (Source:Cho et al. 2017) As per the respective theory, the different people have needs which must be satisfied and, in such scenario, Maslow have used the pyramid which helps in describing along with categorizing the needs. The physiological needs such as proper working conditions are required to be incorporated in the companies in aviation industry which will be suitable for engaging employees and improving their morale. Job security is the other aspect which should be followed in aviation industry as it will be beneficial in growth of employees which can enhance the productivity of the companies. Moreover, as commented by Maslow, the social needs such as the creation of sense of belongingness is the other aspect which should be adopted by the different airline companies as it will be suitable for securing the building and improves the morale of employees in managing the different job-related aspects. The self-esteem is the other aspect in which the recognition and confidence are the two key elements that should be managed by the employees as it can be suitable for making them more engaged and productive. Lastly, as
8 MANAGEMENT commented byCho et al. (2017), the self-actualization helps in translating to maximizing potential of the individuals which will make the employees feel trusted and empowered. For instance-From the respective theory of Maslow, it can be seen that there should be proper motivation is needed for different employees working in the companies as it improves morale of employees. In the case ofBritish Airways, the management of the company tries to satisfy the different needs of employees as the satisfied employees will be able to meet the demands of clients and improve their experience (Marketing Week.com 2019). British Airways employees are being recognized and they are being supported and authority is provided to them which helps them in performing well. British Airways have encouraged flexibility and provide a proper work life balance which is suitable for them in providing the nice environment. Due to the such kind of changes in the work environment, it has reduced the turnover among employees and increased the growth and profitability of the company. In addition, as opined byLee et al. (2017), theextra opportunities related to employmentalong with increasing pay are the two major aspects which leads to the high turnover rate among the employees working with airline industry. There can be inclusion of training and development related programs which can be suitable for the growth wherein they will be having the opportunity to utilize their skills and talents for the future advancements. There can be introduction of on-the job and off-the job training aspects which can be effective in establishment of the long as well as rewarding career. From the analysis of the different strategies, the proper job satisfaction is the key element which will be suitable for improving the growth prospects of the company and will be playing a vital role in reduction of rate of turnover among the employees (Employee Benefits.co.uk 2019). From the analysis of the instance of British Airways, it can be seen that
9 MANAGEMENT the growth prospects and the proper work-life balance are the two key elements which should be followed by the companies for increasing the profitability of the business andincrease competitive advantage in the business environment which is competitive. As commented by Cloutier et al. (2015), the motivation is the most crucial element for creating significant impact on the work given with limited budgets and it will be encouraging the employees to perform the different tasks in an efficient and effective manner. 4.0 Conclusion Therefore, it can be concluded that in the past few years, due to the high level of imbalance in work-life, it has been a huge disadvantage for the different aviation companies to retain the employees. The lack of growth opportunities and less pay are the different elements which has affected the growth of the employees negatively and it affected the productivity of the companies. In such scenarios, there can be introduction of the different kinds of strategies such as proper rewards and pay as well as meeting the basic needs that plays a vital role in improving the role of the employees and it helps them in meeting the objectives successfully.
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10 MANAGEMENT References Aguenza, B.B. and Som, A.P.M., 2018. Motivational factors of employee retention and engagement in organizations.IJAME. Al Mamun, C.A. and Hasan, M.N., 2017. Factors affecting employee turnover and sound retention strategies in business organization: A conceptual view.Problems and Perspectives in Management,15(1), pp.63-71. Aldrich, H.E. and Wiedenmayer, G., 2019. From traits to rates: An ecological perspective on organizational foundings. InSeminal Ideas for the Next Twenty-Five Years of Advances(pp. 61-97). Emerald Publishing Limited. Cho, Y.N., Rutherford, B.N., Friend, S.B., Hamwi, G.A. and Park, J., 2017. The role of emotions on frontline employee turnover intentions.Journal of Marketing Theory and Practice,25(1), pp.57-68. Cloutier, O., Felusiak, L., Hill, C. and Pemberton-Jones, E.J., 2015. The Importance of Developing Strategies for Employee Retention.Journal of Leadership, Accountability & Ethics,12(2). Employee Benefits.co.uk 2019 British Airways gives staff allotment (online) Retrieved from https://www.employeebenefits.co.uk/issues/august-online-2015/british-airways-gives-staff- allotment/[Accessed on 26thAugust 2019] Financial Times.com 2019 Virgin Atlantic faces threat of pilot strike (online) Retrieved from https://www.ft.com/content/abf5d6e4-e366-11e8-a6e5-792428919cee[Accessedon26th August 2019]
11 MANAGEMENT Lee, T.W., Hom, P.W., Eberly, M.B., Junchao (Jason) Li and Mitchell, T.R., 2017. On the nextdecadeofresearchinvoluntaryemployeeturnover.AcademyofManagement Perspectives,31(3), pp.201-221. Marketing Week.com 2019 BA readies staff morale boosting campaigns (online) Retrieved fromhttps://www.marketingweek.com/ba-readies-staff-morale-boosting-campaigns/ [Accessed on 26thAugust 2019] Pereira, V., Malik, A. and Sharma, K., 2016. Colliding EmployerâEmployee Perspectives of Employee Turnover: Evidence from a BornâGlobal Industry.Thunderbird International Business Review,58(6), pp.601-615. Reina, C.S., Rogers, K.M., Peterson, S.J., Byron, K. and Hom, P.W., 2018. Quitting the boss? The role of manager influence tactics and employee emotional engagement in voluntary turnover.Journal of leadership & organizational studies,25(1), pp.5-18. Sun, R. and Wang, W., 2017. Transformational leadership, employee turnover intention, and actualvoluntaryturnoverinpublicorganizations.PublicManagementReview,19(8), pp.1124-1141.